Ratings Updates

Entries for March 2010

This month saw a few more downgrades as noted below. Here are a few other thoughts that may be of interest:

· Conseco is troubling. I currently am engaged to manage the life insurance for a physician client. He has had serious health issues and very well may be uninsurable so carefully watching his current policies is very important. In just the last year Conseco has given us information about the projected performance of the policy reflecting dramatic changes. This might not be so concerning except that they are already crediting the minimum interest rate. The changes then probably come from an increase in mortality charges or reflect a systems error in the calculation of projected values, either of which make for difficulty in planning. Service levels have been very poor

· We have a client who interpreted AXA's decision to delist from the NYSE as an attempt to get away from US regulation. We assured her the SEC and the State Insurance Departments would still be as engaged as ever.

· Hartford has paid back their TARP money, and AIG is in the process - just FYI.

· We have had an increase in inquiries just asking for a second opinion. The planning work is already done and the policies are in force. The work effort is limited since most of the needed information is already together so the cost is nominal. There does appear to be some appreciation for the value of having an objective review even after the fact. Please keep us in mind should any of your clients have such an interest.